LONDON, Sept 19 (Reuters) – Emerging shares rose 0.4 percent
on Wednesday thanks to gains in Asia after Japan’s aggressive
easing of monetary policy but global growth uncertainty and the
possibility of central bank action kept the mood on currency
markets more subdued.
Japan expanded its asset buying and loan programme by 10
trillion yen ($127 billion) to 80 trillion yen,
following on last week’s move by the U.S. Federal Reserve to
embark on a $40 billion-a-month money-printing exercise
That increased hopes that China will also act to shore up
its economy, especially as weak foreign investment data on
Wednesday reinforced the picture of rapidly cooling growth.
Chinese stocks, the biggest component in MSCI’s
emerging equity index, rose 0.4 percent, pushing up the main
emerging markets index after two days of losses.
In emerging Europe, Russian stocks fell 1.2 percent.
The fall was led by a 1.7 percent drop in Sberbank to
93.06 roubles a share, a day after Russia sold a 7.6 percent
stake at 93 roubles a share.
Stocks and the rouble have also been hit by oil at 10-day
lows under $112 a barrel. The rouble fell 0.5 percent.
The Czech crown fell 0.4 percent to two-week lows to the
euro, following its biggest one-day loss in three months. The
losses came after strong verbal intervention by central bank
governor Miroslav Singer.
Analysts expect policymakers, fearful of hot money flows, to
be more proactive in managing exchange rates. Turkey cut rates
on Tuesday and Peru and Brazil intervened on currency markets.
The Polish zloty and Hungarian forint fell 0.2 percent
against the euro .
Continued…
